FINAL TERMS. dated 17 October in connection with the Base Prospectus dated 16 August 2013 (as supplemented from time to time)

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1 FINAL TERMS dated 17 October 2013 in connection with the Base Prospectus dated 16 August 2013 (as supplemented from time to time) of UBS AG, London Branch (the London branch of UBS AG) for the issue of 1,000 (indicative) UBS Gearing Certificates ISIN CH linked to shares These final terms (the Final Terms ) have been prepared for the purpose of Article 5 (4) of the Prospectus Directive and provide additional information to the base prospectus dated 16 August 2013, as supplemented from time to time (the Base Prospectus, together with the Final Terms, the Prospectus ) that was prepared in accordance with the Financial Instruments Trading Act (SFS 1991:980). Terms used herein shall be deemed to be defined as such for the purposes of the Conditions (the Conditions") set forth in the Base Prospectus. The Base Prospectus comprises a securities note (the Securities Note ), dated 16 August 2013, a summary (the Summary ), dated 16 August 2013, and the registration document of UBS AG, dated 16 August 2013, as supplemented from time to time (the Registration Document ). These Final Terms must be read in conjunction with the Base Prospectus and its supplement(s). Full information on the Issuer and the offer of the Securities is only available on the basis of the combination of these Final Terms and the Base Prospectus, as supplemented from time to time. However, a summary of the individual issue of the Securities is annexed to these Final Terms. The Base Prospectus, any supplement to the Base Prospectus and these Final Terms are available for viewing at or a successor address. Copies may be obtained during normal business hours at the registered offices of the Issuer.

2 2 TABLE OF CONTENTS PAGE: OVERVIEW ON THE SECURITY STRUCTURE 3 PART A PRODUCT TERMS 4 PART B OFFERING AND SALE 12 I. Offering for Sale and Issue Price 12 II. Subscription, Purchase and Delivery of the Securities 13 PART C OTHER INFORMATION 14 I. Listing and Trading 14 II. Commissions paid by the Issuer 14 III. Rating 14 IV. Consent to Use of Prospectus 14 V. Indication of Yield 15 VI. Other information about the Securities 15 PART D COUNTRY SPECIFIC INFORMATION 16 PART E INFORMATION ABOUT THE UNDERLYING 17 ANNEX TO THE FINAL TERMS: ISSUE SPECIFIC SUMMARY 19

3 3 OVERVIEW ON THE SECURITY STRUCTURE Gearing Securities UBS Gearing Securities allow Securityholders to participate in the positive development of the Underlying(s). Conversely, Securityholders in UBS Gearing Securities may also participate in the negative development of the Underlying(s), as the Gearing Securities may provide downside risk potential as specified in the applicable Product Terms. Securityholders receive on the Maturity Date a Redemption Amount in the Redemption Currency, the amount of which depends on the Reference Price or the Settlement Price of the Underlying(s), as specified in the relevant Product Terms. The Redemption Amount is calculated by multiplying the Nominal Amount or such other amount as specified in the applicable Product Terms with the relevant performance of the Underlying(s), thereafter multiplied by the Participation Factor, the Leverage Factor or the Multiplier, as specified in the applicable Product Terms. The Redemption Amount may be determined by reference to the performance of one or more Underlying(s), as specified in the relevant Product Terms.

4 4 PART A PRODUCT TERMS The following Product Terms of the Securities shall, for the relevant Securities, complete and put in concrete terms the General Conditions for the purposes of such Securities. A version of these Product Terms as completed and put in concrete terms for the specific issue will be contained in the applicable Final Terms and must be read in conjunction with the General Conditions. The Product Terms are composed of Part 1: Part 2: Key Terms and Definitions of the Securities Special Conditions of the Securities Product Terms and General Conditions together constitute the Conditions of the relevant Securities.

5 5 Part 1: Product Terms: Key Terms and Definitions of the Securities The Securities use the following definitions and have, subject to an adjustment according to the Conditions of the Securities, the following key terms, both as described below in alphabetical order. The following does not represent a comprehensive description of the Securities, and is subject to and should be read in conjunction with the Conditions of the Securities. The following use of the symbol * in the Key Terms and Definitions of the Securities indicates that the relevant determination will be made by the Calculation Agent or the Issuer, as the case may be, and will be published without undue delay thereafter in accordance with the applicable legal requirements of the relevant jurisdiction. B. Banking Day: The Banking Day means each day on which the banks in Helsinki, Finland, are open for business, the Trans-European Automated Real-time Gross settlement Express Transfer System ( TARGET2 ) is open and the Clearing System settles securities dealings. C. CA Rules: CA Rules means the Finnish Act on Book-entry System (1991:826) (laki arvoosuusjärjestelmästä) and the Finnish Act on the Book-entry Accounts (1991:827) (laki arvo-osuustileistä) as well as any regulation and operating procedure applicable to and/or issued by the Clearing System. Clearing System: Clearing System means Euroclear Finland Ltd, Urho Kekkosenkatu 5 C, FI Helsinki, Finland, in its capacity as central securities depository under the Finnish Act on the Book-entry System (1991:826) (laki arvoosuusjärjestelmästä) and the Finnish Act on Book-entry Accounts (1991:827) (laki arvo-osuustileistä) or any successor in this capacity. Coupon: The Coupon equals E. Expiration Date: The Expiration Date means 5 December F. Fiscal Agent: The Fiscal Agent means UBS Limited c/o UBS Deutschland AG, Bockenheimer Landstrasse 2-4, Frankfurt am Main, Federal Republic of Germany. Fixing Date: The Fixing Date means 5 December If this day is not an Underlying Calculation Date in relation to an Underlying (i) the immediately succeeding Underlying Calculation Date is deemed to be the Fixing Date in relation to the affected Underlying (i). In the case of abbreviation or extension of the Subscription Period the Fixing Date may be changed accordingly. Fixing Time: The Fixing Time equals the time of the official determination of the closing price of the respective Underlying (i). FX Factor: The FX Factor equals the quotient of the US Dollar/Euro ( USD/EUR ) currency exchange rate on the Observation Date (i=13) ( FX End ), divided by

6 6 the USD/EUR currency exchange rate on the Fixing Date ( FX Start ). The currency exchange rate is expressed in units EUR per one (1) unit USD. FX Start and FX End will be determined, commercially rounded to 4 decimal places, by the Calculation Agent at its reasonable discretion pursuant to 317 of the German Civil Code ( BGB ), targeting the USD/EUR currency exchange rate resulting as the quotient of 1 divided by the Euro/US Dollar ( EUR/USD ) currency exchange rate as published as fixing at or about 14:15 hrs CET on Reuters page ECB37 (or a substitute page thereof). If a currency exchange rate is not determined or quoted in the manner described above or in case of, in the opinion of the Issuer and the Calculation Agent at their reasonable discretion (pursuant to 315 of the BGB or, as the case may be, 317 of the BGB), a FX Market Disruption (as defined below), the Calculation Agent shall be entitled to identify a currency exchange rate, determined on the basis of the then prevailing market customs. A FX Market Disruption means a limitation, suspension or disruption of or a restriction imposed on trading, the latter of which the Issuer and the Calculation Agent consider significant, on the foreign exchange market(s) in which the rates for the determination of the FX Factor are determined. I. Initial Payment Date: The Initial Payment Date means 19 December In the case of abbreviation or extension of the Subscription Period the Initial Payment Date may be changed accordingly. Issue Date: The Issue Date means 19 December In the case of abbreviation or extension of the Subscription Period the Issue Date may be changed accordingly. Issuer: The Issuer means UBS AG, Bahnhofstrasse 45, 8001 Zurich, Switzerland, and Aeschenvorstadt 1, 4051 Basel, Switzerland, acting through its London Branch, 1 Finsbury Avenue, London EC2M 2PP, United Kingdom. Issuing Agent: The Issuing Agent means Nordea Bank Finland Plc, 2590 Issuer Services, Aleksis Kiven katu 3 5, Helsinki, Finland, or any successor in this capacity. As long as there is any Finnish Security outstanding, there will at all times be an Issuing Agent duly authorised as such under the Finnish CA Rules, in respect of the relevant Finnish Securities. M. Manager: The Manager means UBS Limited, 1 Finsbury Avenue, London EC2M 2PP, United Kingdom. Maturity Date: The Maturity Date means the tenth Banking Day (i) after the relevant Valuation Date, and (ii) in the case of a Termination by the Issuer in accordance with 8 of the Conditions of the Securities, after the Termination Date.

7 7 Minimum Trading Size: The Minimum Trading Size equals 1 Security. N. Nominal Amount: The Nominal Amount per Security equals EUR 10, O. Observation Date: The Observation Date means each 5 th day of a calendar month, beginning on 7 December 2015 (including) (Observation Date (i=1) ) and ending on the Expiration Date (including) (Observation Date (i=13) ). The term Observation Date shall also refer to all Observation Dates (i=1) to (i=13). If one of these days is not an Underlying Calculation Date in relation to an Underlying (i), the immediately succeeding Underlying Calculation Date is deemed to be the relevant Observation Date in relation to the affected Underlying (i). P. Participation Factor: The Participation Factor equals 100 % (indicative). The Participation Factor will be fixed on the Fixing Date. * Paying Agent: The Paying Agent means UBS Limited c/o UBS Deutschland AG, Bockenheimer Landstrasse 2 4, Frankfurt am Main, Federal Republic of Germany, and Nordea Bank Finland Plc, 2590 Issuer Services, Aleksis Kiven katu 3 5, Helsinki, Finland. The term Paying Agent shall also refer to all Paying Agents including the Fiscal Agent. Price of the Underlying: The Price of the Underlying means the official closing price of the Underlying (i) as determined on the Relevant Exchange (Quanto USD). Quanto USD means for the purpose of these Securities that the original currency of the respective Underlying (i) is considered according to amount as a USD price without any conversion, i.e. one unit of the original currency of the Underlying (i) equals 1 unit USD. R. Redemption Currency: The Redemption Currency means Euro ( EUR ). Relevant Exchange: The Relevant Exchange means in relation to the Underlying (i=1) Euronext Paris, in relation to the Underlying (i=2) NASDAQ OMX Stockholm AB, in relation to the Underlying (i=3) NASDAQ OMX Stockholm AB, in relation to the Underlying (i=4) Tokyo Stock Exchange, in relation to the Underlying (i=5) Frankfurt Stock Exchange (Xetra ), in relation to the Underlying (i=6) New York Stock Exchange, in relation to the Underlying (i=7) New York Stock Exchange, in relation to the Underlying (i=8) Euronext Amsterdam, in relation to the Underlying (i=9) New York Stock Exchange, and in relation to the Underlying (i=10) SIX Swiss Exchange. Relevant Futures and The Relevant Futures and Options Exchange means the futures and options

8 8 Options Exchange: exchange(s), on which futures and option contracts on the Underlying are primarily traded, as determined by the Calculation Agent. S. Securities: Securities means the UBS Gearing Certificates issued by the Issuer in the Issue Size with the following product features: Participation Factor: Leverage Factor: Multiplier: Multiplication Factor: Reverse Structure: Express Structure: Thresholds / Limits: Maximum Amount: Relevant Underlying: Physical Delivery: Currency Conversion: Capital Protection: No pre-defined term: Minimum Exercise Size: Securityholder s General Termination Right: Quanto: Consideration of Components: Individual Determination: Collective Determination: Issuer s Call Right Investor s Put Right Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Applicable Not Applicable Not Applicable Not Applicable The Securities are being issued in uncertificated and dematerialised form to be registered in book-entry form at the Clearing System (also the "Finnish Securities") and will not be represented by definitive securities. Security Exchange: Security Exchange means Nordic Derivatives Exchange (NDX). Security Identification Codes: Settlement Price: ISIN: CH , Valor: The Settlement Price (i) of the Underlying (i) equals the arithmetical average of the Prices of the Underlying (i) on each of the Observation Dates (i) as determined by the Calculation Agent at the Valuation Time (Quanto USD). Quanto USD means for the purpose of these Securities that the original currency of the Underlying is considered according to amount as a USD price without any conversion, i.e. one (1) unit of the original currency of the Underlying equals one (1) unit USD. The term Settlement Price shall also refer to all Settlement Prices (i=1) to (i=10). Strike: The Strike (i) of the Underlying (i) equals the Price of the respective Underlying (i) at the Fixing Time on the Fixing Date (Quanto USD). Quanto USD means for the purpose of these Securities that the original currency of the Underlying is considered according to amount as a USD

9 9 price without any conversion, i.e. one (1) unit of the original currency of the Underlying equals one (1) unit USD. The term Strike shall also refer to all Strikes (i=1) to (i=10). The Strike will be fixed at the Fixing Time on the Fixing Date. * T. Term of the Securities: The Term of the Securities means the period, commencing on the Issue Date and ending on the Expiration Date at the Valuation Time. Termination Amount: The Termination Amount equals an amount in the Redemption Currency, which is determined by the Calculation Agent at its reasonable discretion and considering the then prevailing Price of the Underlying as the fair market price of a Security at the occurrence of the termination of the Securities. U. Underlyings: The Underlying (i=1) equals the share of Total S.A. (ISIN FR , Bloomberg: FP FP), the Underlying (i=2) equals the share of Skanska AB (ISIN SE , Bloomberg: SKAB SS), the Underlying (i=3) equals the share of H & M Hennes & Mauritz AB (ISIN SE , Bloomberg: HMB SS), the Underlying (i=4) equals the share of Takeda Pharmaceutical Company Limited (ISIN JP , Bloomberg: 4502 JT), the Underlying (i=5) equals the share of Siemens AG (ISIN DE , Bloomberg: SIE GY), the Underlying (i=6) equals the share of KIMBERLRY-CLARK CORPORATION (ISIN US , Bloomberg: KMB UN), the Underlying (i=7) equals the share of GENERAL MILLS, INC. (ISIN US , Bloomberg: GIS UN), the Underlying (i=8) equals the share of Unilever N.V. (ISIN NL , Bloomberg: UNA NA), the Underlying (i=9) equals the share of McDONALD S CORPORATION (ISIN US , Bloomberg: MCD UN), and the Underlying (i=10) equals the share of Nestlé S.A. (ISIN CH , Bloomberg: NESN VX). The term Underlying shall also refer to all Underlyings (i=1) to (i=10). Underlying Calculation Date: The Underlying Calculation Date means each day, on which the Relevant Exchange is open for trading and the Price of the Underlying is determined in accordance with the relevant rules. V. Valuation Date: The Valuation Date means the relevant Observation Date (i).

10 10 Valuation Time: The Valuation Time equals the time of official determination of the closing price of the respective Underlying (i).

11 11 Part 2: Product Terms: Special Conditions of the Securities (1) Security Right of the Securityholders 1 Security Right The Issuer hereby warrants to the Securityholder ( 4 (2)) of each (1) Security relating to the Price of the Underlyings in accordance with these Conditions that such Securityholder shall have the right (the Security Right ) to receive the Settlement Amount ( 1 (2)) commercially rounded to two decimal places (the Redemption Amount ). (2) Settlement Amount The Settlement Amount will be determined as follows: (a) If the Portfolio Performance (as defined below) is greater than Zero (0), the Settlement Amount will be determined in accordance with the following formula: NA x C + NA x [Max(0; P x (Portfolio Performance C))] x FX Where NA equals the Nominal Amount, C equals the Coupon, P equals the Participation Factor, and FX equals the FX Factor. (b) If the Portfolio Performance (as defined below) is equal to or lower than Zero (0), the Settlement Amount equals Zero (0). where the Portfolio Performance will be determined in accordance with the following formula: = i 1 SettlementPrice Strike (i) (i) Strike (i) Where: Settlement Price (i) equals the Settlement Price (i) of the Underlying (i), and Strike (i) equals the Strike (i) of the Underlying (i). (3) Determinations and Calculations in connection with the Security Right Any determination and calculation in connection with the Security Right, in particular the calculation of the Redemption Amount, will be made by the Calculation Agent ( 12). Determinations and calculations made in this respect by the Calculation Agent shall (save in the case of manifest error) be final, conclusive and binding on the Issuer and the Securityholders. 2 (Intentionally left blank) 3 (Intentionally left blank)

12 12 PART B OFFERING AND SALE I. Offering for Sale and Issue Price Offering for Sale and Issue Price: The UBS Gearing Certificates (the Securities, and each a Security ) are issued by the Issuer in the Issue Size. It has been agreed that, on or after the respective Issue Date of the Securities, the Manager may purchase Securities and shall place the Securities for sale at the Issue Price under terms subject to change in the Public Offer Jurisdictions (as defined in IV. Consent to Use of Prospectus below). The Issue Price was fixed at the Start of the public offer of the Securities (as defined in II. Subscription, Purchase and Delivery of the Securities below). After closing of the Subscription Period (as defined in II. Subscription, Purchase and Delivery of the Securities below) the selling price will then be adjusted on a continual basis to reflect the prevailing market situation. The Manager shall be responsible for coordinating the entire Securities offering. Issue Size: The Issue Size means 1,000 Securities (indicative). The Issue Size will be fixed at the end of the Subscription Period. Aggregate Amount of the Issue: Issue Price x Issue Size. Issue Date: The Issue Date means 19 December In the case of abbreviation or extension of the Subscription Period the Issue Date may be changed accordingly. Issue Price: The Issue Price equals EUR 1, Manager: The Manager means UBS Limited, 1 Finsbury Avenue, London EC2M 2PP, United Kingdom. Type and form of the Securities: Certificates Clearing system: Euroclear Finland Ltd, Urho Kekkosenkatu 5 C, FI Helsinki, Finland. ISIN-code: The Securities have the following ISIN: CH Currency: The currency of the Securities is EUR ( EUR ).

13 13 Conflicting Interests: Save for the Manager regarding its fees, as far as the Issuer is aware, no person involved in the issue of the Securities has an interest material to the offer. II. Subscription, Purchase and Delivery of the Securities Subscription, Purchase and Delivery of the Securities: The Securities may be subscribed from the Manager during normal banking hours during the Subscription Period. The Issue Price per Security is payable on the Initial Payment Date. The Issuer reserves the right to earlier close or to extend the Subscription Period if market conditions so require. After the Initial Payment Date, the appropriate number of Securities shall be credited to the investor s account in accordance with the rules of the corresponding Clearing System. If the Subscription Period is shortened or extended, the Initial Payment Date may also be brought forward or postponed. Subscription Period: 17 October 2013 until 28 November 2013 (17:30 hrs local time Helsinki) The Issuer reserves the right to earlier close or to extend the Subscription Period by giving notice to the investors if market conditions so require. Start of the public offer of the Securities: 17 October 2013 in Finland and Sweden Initial Payment Date: The Initial Payment Date means 19 December In the case of abbreviation or extension of the Subscription Period the Initial Payment Date may be changed accordingly.

14 14 PART C OTHER INFORMATION I. Listing and Trading Listing and Trading The Issuer intends to apply for listing of the Securities on the Nordic Derivatives Exchange (NDX). II. Commissions paid by the Issuer Comissions paid by the Issuer (i) Underwriting and/or placing fee: The Issuer may grant sales and recurring commissions to distributors related to the amount/number of placed or sold Securities as indicated in (i) to (iv). Sales commissions are paid out of the issue proceeds as a one-off payment; alternatively the Issuer may grant an agio on the issue price (excl. the offering premium) to the distributor. Recurring commissions are paid regularly depending on the respective securities volume. If UBS acts as Issuer and distributor the relevant commissions are internally booked in favour of the distributing organisational unit. Not Applicable (ii) Selling commission: Not Applicable (iii) Listing Commission: (iv) Other: Not Applicable Fee of up to 1.2 % per annum, all paid upfront III. Rating Ratings: The Securities have not been rated. IV. Consent to Use of Prospectus The Issuer consents to the use of the Base Prospectus together with the relevant Final Terms in connection with a public offer (a Public Offer ) of any relevant Securities by any financial intermediary which is authorised to make such offers under the Markets in Financial Instruments Directive (Directive 2004/39/EC) (each an Authorised Offeror ) on the following basis: (a) (b) (c) the relevant Public Offer must occur during the Offer Period specified below; the relevant Public Offer may only be made in a Public Offer Jurisdiction specified below; the relevant Authorised Offeror must be authorised to make such offers in the relevant Public Offer Jurisdiction under the Markets in Financial Instruments Directive (Directive 2004/39/EC) and if any Authorised Offeror ceases to be so authorised then the above consent of the Issuer shall thereupon terminate. Offer Period: Public Offer Jurisdiction: Subscription Period (as defined in II. Subscription, Purchase and Delivery of the Securities above) Finland and Sweden

15 15 V. Indication of Yield Yield: Not Applicable VI. Other information about the Securities Authorisation: The issuance of Securities under the Base Prospectus from time to time has been authorised by applicable corporate authorisations. Procedure for redemption of Securities: As specified in 1 of the Conditions of the Securities Part 2: Product Terms: Special Conditions of the Securities of these Final Terms. Disturbing events that affect the Underlyings: As specified in 11 of the General Conditions of the Securities of the Summary and the Securities Note dated 16 August Adjustment rules for taking into account events that affect the Underlyings: Explanation of how the Underlyings affect the Securities: Paying Agent: As specified in 6 (b) of the General Conditions of the Securities of the Summary and the Securities Note dated 16 August As specified in the section OVERVIEW ON THE SECURITY STRUCTURE of these Final Terms. The Paying Agent means UBS Limited c/o UBS Deutschland AG, Bockenheimer Landstrasse 2 4, Frankfurt am Main, Federal Republic of Germany, and Nordea Bank Finland Plc, 2590 Issuer Services, Aleksis Kiven katu 3 5, Helsinki, Finland. The term Paying Agent shall also refer to all Paying Agents including the Fiscal Agent. Guarantor/s/: Not Applicable Calculation Agent: UBS AG, Bahnhofstrasse 45, 8001 Zurich, Switzerland, and Aeschenvorstadt 1, 4051 Basle, Switzerland, acting through its London Branch, 1 Finsbury Avenue, London EC2M 2PP, United Kingdom. Information from third parties: Applicable, where the Final Terms contain information obtained from third parties, such information was reproduced accurately, and to the best knowledge of the Issuer - as far as it is able to ascertain from information provided or published by such third party - no facts have been omitted which would render the reproduced information inaccurate or misleading. Information after the Issue Date: The Issuer does not intend to give information about the Securities after the Issue Date.

16 16 PART D COUNTRY SPECIFIC INFORMATION Additional Paying Agent(s) (if any): Not Applicable

17 17 PART E INFORMATION ABOUT THE UNDERLYING Total S.A. (ISIN FR ) Total S.A. explores for, produces, refines, transports, and markets oil and natural gas. The company also operates a chemical division which produces polypropylene, polyethylene, polystyrene, rubber, paint, ink, adhesives, and resins. Total S.A. operates gasoline filling stations in Europe, the United States, and Africa. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page Skanska AB (ISIN SE ) Skanska AB offers construction related and project development services. The company focuses on construction of housing, commercial buildings, roads, and railways, as well as develops and carries out international civil engineering projects. Skanska AB is also a provider of facilities management services. The company is active in Northern Europe, North and South America, and Asia. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page H & M Hennes & Mauritz AB (ISIN SE ) H & M Hennes & Mauritz AB designs and retails fashions for women, men, teens, and children. The company sells a variety of trendy, sporty, and classic garments in addition to accessories such as jewelery, bags, and scarves, and cosmetics. The company owns and operates stores in many European countries and the United States. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page Takeda Pharmaceutical Company Limited (ISIN JP ) Takeda Pharmaceutical Company Limited mainly manufactures and sells pharmaceuticals, food supplements, and chemical products like polyurethane. The company also produces food, agrochemicals, and environment-related products such as pollution detectors. Takeda Pharmaceutical Company Limited researches, develops, and promotes the products through its related companies in the US, Europe, and Asia. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page Siemens AG (ISIN DE ) Siemens AG is an engineering and manufacturing company. The company focuses on three major business sectors including industrial, energy, and healthcare. Siemens AG provides engineering solutions in automation and control, power, transportation, medical, information and communication, and lighting. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page KIMBERLRY-CLARK CORPORATION (ISIN US ) KIMBERLY-CLARK CORPORATION is a global health and hygiene company that manufactures and provides consumer products. The company s products include diapers, tissues, paper towels, incontinence care products, surgical gowns, and disposable face masks. Its products are sold in countries around the world. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page

18 18 GENERAL MILLS, INC. (ISIN US ) GENERAL MILLS, INC. manufactures and markets branded and packaged consumer foods worldwide. The company also supplies branded and unbranded food products to the foodservice and commercial baking industries. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page Unilever N.V. (ISIN NL ) Unilever N.V. manufactures branded and packaged consumer goods, including food, detergents, fragrances, home and personal care products. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page McDONALD S CORPORATION (ISIN US ) McDONALD'S CORPORATION franchises and operates fast-food restaurants in the global restaurant industry. The company s restaurants serve a variety of value-priced menu products in countries around the world. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page Nestlé S.A. (ISIN CH ) Nestlé S.A. is a multinational packaged food company that manufactures and markets a wide range of food products. The company s product line includes milk, chocolate, confectionery, bottled water, coffee, creamer, food seasoning and pet foods. Further information as well as information about the past performance and the volatility of the Underlying can be obtained from the internet page

19 19 ANNEX TO THE FINAL TERMS: ISSUE SPECIFIC SUMMARY This summary relates to UBS Gearing Certificates described in the final terms (the Final Terms") to which this summary is annexed. This summary contains that information from the summary set out in the Base Prospectus which is relevant to the Securities together with the relevant information from the Final Terms. Words and expressions defined in the Final Terms and the Base Prospectus have the same meanings in this summary. Summaries are made up of disclosure requirements known as Elements. These elements are numbered in Sections A E (A.1 E.7). This Summary contains all the Elements required to be included in a summary for this type of securities and Issuer. Because some Elements are not required to be addressed, there may be gaps in the numbering sequence of the Elements. Even though an Element may be required to be inserted in the summary because of the type of securities and Issuer, it is possible that no relevant information can be given regarding the Element. In this case a short description of the Element is included in the summary with the mention of not applicable. Element Section A Introduction and warnings A.1 Warning. This Summary should be read as an introduction to the Base Prospectus. Any decision to invest in the Securities should be based on consideration of the Base Prospectus as a whole by the investor. Potential investors should be aware that where a claim relating to the information contained in the Base Prospectus is brought before a court, the plaintiff investor might, under the national legislation of the respective European Economic Area member state, have to bear the costs of translating the document before the legal proceedings are initiated. UBS AG in its capacity as Issuer who is responsible for the summary including the translation thereof can be held liable, but only if the summary is misleading, inaccurate or inconsistent when read together with the other parts of the Base Prospectus or it does not provide, when read together with the other parts of the Base Prospectus, all required key information. A.2 Consent to use of Prospectus. The Issuer consents to the use of the Base Prospectus together with the relevant Final Terms in connection with a public offer of the Securities (the "Public Offer") by any financial intermediary which is authorised to make such offers under the Markets in Financial Instruments Directive (Directive 2004/39/EC) (each an Authorised Offeror ) on the following basis: (a) (b) (c) the relevant Public Offer must occur during the Subscription Period (the "Offer Period"); the relevant Public Offer may only be made in Finland and Sweden (the "Public Offer Jurisdiction"); the relevant Authorised Offeror must be authorised to make such offers in the relevant Public Offer Jurisdiction under the Markets in Financial Instruments Directive (Directive 2004/39/EC) and if any Authorised Offeror ceases to be so authorised then the above consent of the Issuer shall thereupon terminate. Authorised Offerors will provide information to investors on the terms and conditions of the Public Offer of the Securities at the time such Public Offer is made by the Authorised Offeror to the

20 20 investor. Element B.1 Legal and commercial name of the issuer. B.2 Domicile, legal form, legislation and country of incorporation of the issuer. Section B Issuer The legal and commercial name of the Issuer is UBS AG ("Issuer", UBS or Bank"). UBS in its present form was created on 29 June 1998 by the merger of Union Bank of Switzerland (founded 1862) and Swiss Bank Corporation (founded 1872). UBS AG is entered in the Commercial Registers of Canton Zurich and Canton Basel-City. The registration number is CH B.4b Trends. Trend Information UBS AG is incorporated and domiciled in Switzerland and operates under the Swiss Code of Obligations and Swiss Federal Banking Law as an Aktiengesellschaft, a corporation that has issued shares of common stock to investors. The addresses of UBS AG's two registered offices and principal places of business are: Bahnhofstrasse 45, CH-8001 Zurich, Switzerland, and Aeschenvorstadt 1, CH-4051 Basel, Switzerland. As stated in the outlook statement presented in UBS AG's second quarter 2013 report, including unaudited consolidated financial statements and issued on 30 July 2013, at the end of the second quarter, the market reaction to the eventual end of quantitative easing in the US served as a reminder that looser monetary policy across the globe has not resolved the underlying challenges related to structural fiscal and economic issues. For the first half of 2013, UBS s revenue growth and business flows evidence the fact that UBS continued to manage its businesses effectively in challenging market conditions. However, for the third quarter of 2013, client confidence and activity levels could be impacted further by the continued absence of sustained and credible improvements to unresolved European sovereign debt and banking system issues and US fiscal issues, and by the mixed outlook for global growth. This would make improvements in prevailing market conditions unlikely and, together with the seasonal decline in activity levels traditionally associated with the summer holiday season, would consequently generate headwinds for revenue growth, net interest margins and net new money. Nevertheless, UBS remains confident that its wealth management businesses will continue to attract net new money, reflecting new and existing clients steadfast trust in the firm, and that the actions it has taken will ensure the firm s long-term success and will deliver sustainable returns for its shareholders going forward. B.5 Organisational structure. B.9 Profit forecast or estimates. UBS AG is the parent company of the UBS Group. The objective of the UBS's group structure is to support the business activities of the parent company within an efficient legal, tax, regulatory and funding framework. None of the individual business divisions of UBS or the Corporate Center are legally independent entities; instead, they primarily perform their activities through the domestic and foreign offices of the parent bank. In cases where it is impossible or inefficient to operate via the parent bank, due to local legal, tax or regulatory provisions, or where additional legal entities join the Group through acquisition, the business is operated on location by legally independent group companies. Not applicable; no profit forecast or estimates is made in the Base Prospectus. B.10 Qualifications in Not applicable; the auditor s reports on the audited historical financial

21 21 the audit report. B.12 Selected historical key financial information. information are unqualified. UBS derived the following selected consolidated financial data from (i) its annual report 2012 containing the audited consolidated financial statements for the fiscal year ended 31 December 2012 (including comparative figures for the fiscal years ended 31 December 2011 and 2010) and (ii) its unaudited consolidated financial statements for the quarter ended 3o June 2013 (from which comparative figures for the quarter ended 30 June 2012 as well as selected comparative figures as of 31 December 2012 have been derived). UBS s consolidated financial statements were prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and stated in Swiss francs ("CHF"). As of or for the quarter ended As of or for the year ended CHF million, except where indicated unaudited audited, except where indicated Group results Operating income 7,389 6,402 25,423* 27,788 31,994 Operating expenses 6,369 5,400 27,216 22,482 24,650 Operating profit / (loss) before 1,020 1,002 (1,794)* 5,307 7,345 tax Net profit / (loss) attributable to UBS (2,480)* 4,138 7,452 shareholders Diluted earnings per share (CHF) (0.66)* Key performance indicators, balance sheet and capital management, and additional information Performance Return on equity (RoE) (%) 2 Return on tangible equity (%) 3 Return on riskweighted assets, gross (%) 4 Return on assets, gross (%) 5 Growth Net profit growth (%) 6 Net new money growth (%) 7 Efficiency Cost / income ratio (%) 8 Capital strength BIS Basel III common equity tier 1 capital ratio (%, phase-in) 9, 10 BIS Basel III common equity tier 1 capital ratio (%, fully applied) 9, 10 Swiss SRB leverage ratio (%) 9, (5.1)* 9.1* 18.0* * 11.9* 24.7* * 13.7* 15.5* * 2.1* 2.3* (30.2) (49.4) N/A* (44.5)* N/A* * 1.9* (0.8)* * 80.7* 76.9* * * *

22 22 Balance sheet and capital management Total assets 1,129,071 1,410,233 1,259,797* 1,416,962 1,314,813 Equity attributable to UBS shareholders Total book value per share (CHF) Tangible book value per share (CHF) BIS Basel III common equity tier 1 capital (phase-in) 12 BIS Basel III common equity tier 1 capital (fully applied) 12 BIS Basel III riskweighted assets (phase-in) 12 BIS Basel III riskweighted assets (fully applied) 12 BIS Basel III total capital ratio (%, phase-in) 12 BIS Basel III total capital ratio (%, fully applied) 12 47,073 50,503 45,949* 48,530 43, * 12.95* 11.53* * 10.36* 8.94* 39,398 40,032* 26,817 25,182* 242, ,800* 239, ,113* * * Additional information Invested assets (CHF billion) 13 Personnel (fulltime equivalents) Market capitalization *unaudited 2,348 2,163 2,230 2,088 2,075 60,754 63,520 62,628* 64,820* 64,617* 61,737 42,356 54,729* 42,843* 58,803* 1 On 1 January 2013, UBS adopted IASB October 2012 amendments to IFRS 10 Consolidated Financial Statements. The comparative 2012 periods included in UBS's first and second quarter reports 2013 have been adjusted to reflect the effect of adopting IFRS 10. Under IFRS 10, periods prior to 2012 are not required to be restated in 2013 quarterly reports. 2 Net profit attributable to UBS shareholders on a year-to-date basis (annualized as applicable) / average equity attributable to UBS shareholders (year-to-date basis). 3 Net profit attributable to UBS shareholders before amortization and impairment of goodwill and intangible assets / average equity attributable to UBS shareholders less average goodwill and intangible assets. 4 Operating income before credit loss (expense) or recovery on a year-to-date basis (annualized as applicable) / average risk-weighted assets (yearto-date basis). Based on BIS Basel III risk-weighted assets (phase-in) for 2013, on Basel 2.5 risk-weighted assets for 2012 and on Basel II risk-weighted assets for 2011 and Operating income before credit loss (expense) or recovery on a year-to-date basis (annualized as applicable) / average total assets (year-to-date basis). 6 Change in net profit attributable to UBS shareholders from continuing operations between current and comparison periods / net profit attributable to UBS shareholders from continuing operations of comparison period. Not meaningful and not included if either the reporting period or the comparison period is a loss period. 7 Net new money for the period (annualized as applicable) / invested assets at the beginning of the period. Group net new money includes net new money for Retail & Corporate and excludes interest and dividend income. 8 Operating expenses / operating income before credit loss (expense) or recovery. 9 On 1 January 2013 the BIS Basel III requirements became effective in Switzerland. In order to align its key performance indicators framework, in the first quarter of 2013 UBS replaced the key performance indicators "BIS tier 1 ratio (%)" and "FINMA leverage ratio (%)" with "BIS Basel III common equity tier 1 capital ratio (%, phase in / fully applied)" and "Swiss SRB (systemically relevant banks) leverage ratio (%)". Numbers for 31 December 2012 are on a pro-forma basis. 10 BIS Basel III common equity tier 1 capital / BIS Basel III risk-weighted assets. The information provided on a fully applied basis does not consider the effects of the transition period, during which new capital deductions are phased in and ineligible capital instruments are phased out. 11 Total capital / IFRS assets, based on a capital adequacy scope of consolidation, adjusted for replacement value netting and other adjustments, including off-balance sheet items. Formerly referred to as FINMA

23 23 Basel III leverage ratio. 12 On 1 January 2013 the Basel III requirements became effective in Switzerland. BIS Basel III numbers for 31 December 2012 are on a proforma basis. 13 Group invested assets includes invested assets for Retail & Corporate. There has been no material adverse change in the prospects of UBS since 31 December There has been no significant change in the financial or trading position of UBS since 30 June B.13 Recent events. Not applicable, no recent events particular to the Issuer have occurred, which are to a material extent relevant to the evaluation of the Issuer's solvency. B.14 Dependence upon UBS AG is the parent company of the UBS Group. As such, to a certain other entities extent, it is dependent on certain of its subsidiaries. within the group. B.15 Issuer s principal activities. B.16 Controlling persons. UBS AG with its subsidiaries (together, "UBS Group", "Group" or "UBS") draws on its 150-year heritage to serve private, institutional and corporate clients worldwide, as well as retail clients in Switzerland. UBS's business strategy is centered on its pre-eminent global wealth management businesses and its leading universal bank in Switzerland. These businesses, together with a client-focused Investment Bank and a strong, welldiversified Global Asset Management business, will enable UBS to expand its premier wealth management franchise and drive further growth across the Group. Headquartered in Zurich and Basel, Switzerland, UBS has offices in more than 50 countries, including all major financial centers. According to Article 2 of the Articles of Association of UBS AG ("Articles of Association") the purpose of UBS AG is the operation of a bank. Its scope of operations extends to all types of banking, financial, advisory, trading and service activities in Switzerland and abroad. The following are the most recent notifications of holdings in UBS AG's share capital filed in accordance with the Swiss Stock Exchange Act, based on UBS AG's registered share capital at the time of the disclosure: 30 September 2011, Norges Bank (the Central Bank of Norway), 3.04%; 12 March 2010, Government of Singapore Investment Corp., 6.45%; 17 December 2009, BlackRock Inc., New York, USA, 3.45%. Voting rights may be exercised without any restrictions by shareholders entered into UBS's share register, if they expressly render a declaration of beneficial ownership according to the provisions of the Articles of Association. Special provisions exist for the registration of fiduciaries and nominees. As of 30 June 2013, the following shareholders (acting in their own name or in their capacity as nominees for other investors or beneficial owners) were registered in the share register with 3% or more of the total share capital of UBS AG: Chase Nominees Ltd., London (11.46%); Government of Singapore Investment Corp., Singapore (6.39%); the US securities clearing organization DTC (Cede & Co.) New York, "The Depository Trust Company" (5.36%); and Nortrust Nominees Ltd., London (4.09%). Element C.1 Type and the class of the securities, security identification Section C Securities Type and Form of Securities The Securities are certificates. The Securities are issued in uncertificated and dematerialised book-entry

24 24 number. form, and are registered for clearing through Euroclear Finland Oy ( Euroclear Finland ). The Securities have the following ISIN: CH C.2 Currency of the securities. C.5 Restrictions on the free transferability of the securities. C.8 Rights attached to the securities, including ranking and limitations to those rights. The currency of the Securities is Euro ("EUR") (the "Redemption Currency"). Each Security is transferable in accordance with applicable law and any rules and procedures for the time being of any Clearing System through whose books such Security is transferred. Governing law of the Securities The Securities will be governed by German law ( German law governed Securities ). The legal effects of the registration of the Securities with the relevant Clearing System are governed by the laws of the jurisdiction of the Clearing System. Rights attached to the Securities The Securities provide, subject to the Conditions of the Securities, Securityholders, at maturity or upon exercise, with a claim for payment of the Redemption Amount in the Redemption Currency and/or delivery of the Physical Underlying in the relevant number. Limitation of the rights attached to the Securities Under the conditions set out in the Conditions, the Issuer is entitled to terminate the Securities and to make certains adjustments to the Conditions. Status of the Securities The Securities will constitute direct, unsecured and unsubordinated obligations of the Issuer, ranking pari passu among themselves and with all other present and future unsecured and unsubordinated obligations of the Issuer, other than obligations preferred by mandatory provisions of law. C.11 Admission to trading on a regulated market or other equivalent markets. C.15 Influence of the underlying on the value of the securities. The Issuer intends to apply for listing of the Securities on the Nordic Derivatives Exchange (NDX). The value of the Securities during their term depends on the performance of the Underlying. In case the price of the Underlying increases, also the value of the Securities (disregarding any special features of the Securities) is likely to increase. In particular, the Redemption Amount, if any, to be received by the Securityholder upon exercise of the Securities depends on the performance of the Underlying. The following features are examples describing the dependency of the value of the Securities from the Underlying: Gearing Securities UBS Gearing Securities allow Securityholders to participate in the positive development of the Underlying(s). Conversely, Securityholders in UBS Gearing Securities may also participate in the negative development of the Underlying(s), as the Gearing Securities may provide downside risk potential as specified in the applicable Product Terms.

25 25 Securityholders receive on the Maturity Date a Redemption Amount in the Redemption Currency, the amount of which depends on the Reference Price or the Settlement Price of the Underlying(s), as specified in the relevant Product Terms. The Redemption Amount is calculated by multiplying the Nominal Amount or such other amount as specified in the applicable Product Terms with the relevant performance of the Underlying(s), thereafter multiplied by the Participation Factor, the Leverage Factor or the Multiplier, as specified in the applicable Product Terms. The Redemption Amount may be determined by reference to the performance of one or more Underlying(s), as specified in the relevant Product Terms. The following descriptions of several performance structures might be used for the Securities described in the section above Underlyings Securities can either depend on one single Underlying, a basket of Underlyings, the best performing Underlying(s), the worst performing Underlying(s) or a combination of those. Basket performances are calculated as the weighted average of the performances of the individual Underlying(s). The weightings can either be predefined or be defined during the life of the product depending on certain conditions. Weights can for example depend on the relative performance of the underlings or the realised volatility of the Underlying(s). Performances The performance or levels of the Underlying(s) can be measured in various ways. Usually the performance is measured as the final level of the Underlying(s) as a percentage of the initial level of the Underlying(s). However the final level and / or the initial level can also either be defined as the average / maximum / mimum level of the Underlying(s) observed within a certain period. The initial level does not necessarily need to be observed on the strike date of the product but can also be observed during the life of the product. Performance can also be measured as the relative performance of one or more Underlying(s) relative to the performance of one or more different Underlying(s). Performances can also have a pre-defined or a variable and/or conditional cap. This means Securityholders accept a limitation of earning potential ("Cap") and may only participate in possible price increases (or decreases) of the Underlying(s) until a certain level is reached and no further. Additionally performances can also have a pre-defined or a variable and/or conditional floor. This means Securityholders will have a minimum of earning potential ("Floor") and may only negatively participate in possible price decreases (or increases) of the Underlying(s) until a certain level is reached and no further. Barriers Securities can have barriers that are activated as soon as certain conditions are met. Usually these barriers represent certain levels to be reached by the Underlying(s) on certain observation dates. Barriers can either be triggered by Underlying(s), performances or other measures reaching certain predefined levels. Some barriers are only